• Protiendas
• 11th April, 2025

How to Measure the ROI of Custom Software in Your Company

Introduction

Measuring the ROI (Return on Investment) of custom software in your company is crucial for determining the effectiveness of your investment. In this article, we will explore the various ways to calculate and analyze ROI.

What is ROI?

ROI is a metric that allows you to evaluate the profitability of an investment. It is calculated by dividing the net benefit of the investment by the cost of the investment, multiplied by 100.

Why is it important to measure the ROI of custom software?

Measuring ROI helps you understand if the custom software is generating value for your company. A positive ROI means that the investment has been profitable.

Steps to Measure the ROI of Custom Software

1. Define clear objectives: Before measuring ROI, it's essential to establish what you expect to achieve with the software.

2. Calculate costs: Include all costs associated with the development and maintenance of the software.

3. Evaluate benefits: Consider both tangible and intangible benefits that the software brings to your business.

4. Perform the ROI calculation: Apply the ROI formula to obtain a percentage that reflects the performance of your investment.

Conclusion

Measuring the ROI of custom software is a process that, while complex, is essential to ensure that your investment is profitable in the long run.